According to a report by Zhong Yi from the China Financial Forty Forum on January 5, the development of cryptocurrencies has given rise to at least three different types based on their characteristics. According to their design mechanisms and functions, private cryptocurrencies can be mainly classified into three categories: Store of Value Cryptocurrencies, Utility Tokens, and Stablecoins.
Category I: Store of Value Cryptocurrencies, typical representatives include Bitcoin, Litecoin (LTC), etc. Although this type of cryptocurrency was initially designed for peer-to-peer electronic payments, it has evolved to primarily serve as a means of digital value storage.
Category II: Utility Tokens, typical representatives include Ether (ETH), Solana (SOL), etc. This category can be further divided into three types: 1. Infrastructure Tokens, 2. Service Tokens, 3. Finance Tokens.
Category III: Stablecoins, typical representatives include USDT, USDC, etc., which can be divided into four categories: 1. Stablecoins pegged to fiat currencies, 2. Stablecoins pegged to commodities, 3. Cryptocurrency-backed stablecoins, 4. Algorithmic stablecoins.
As of December 28, 2024, the CoinGecko website has reported 16,022 types of cryptocurrencies across 1,200 exchanges globally, with a total market capitalization of approximately $3.43 trillion, and a trading volume of about $165.3 billion in the past 24 hours. In relative terms, this market capitalization is equivalent to 5% of the total market capitalization of the U.S. stock market and 35% of the Chinese stock market. In early 2014, the total market capitalization of cryptocurrencies was only $10.6 billion, representing a growth of over 300 times in the past decade.
